Deterra, Inc., uses three departments to produce a detergent. The Finishing Department is the third and...

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Deterra, Inc., uses three departments to produce a detergent. The Finishing Department is the third and last step before the product is transferred to storage. All materials needed to give the detergent its final composition are added at the beginning of the process in the Finishing Department. The company uses FIFO costing. The following data for the Finishing Department for October have been made available: Production data: In process, October 1 (labor and factory overhead, 75% complete) Transferred in from preceding department Finished and transferred to storage In process, October 31 (labor and factory overhead, 50% complete) 10,000 litres 40,000 litres 35,000 litres 15,000 litres Additional data: Work-in-process inventory, October 1: Cost from preceding department Cost from this department: $ 38,000 Materials Labor 21,500 39,000 42,000 $140,500 Factory overhead Transferred in during October $140,000 Cost added in this department: Materials $ 70,000 Labor 162,500 130,000 $362,500 Factory overhead Required: Calculate the cost of the units transferred out to finished goods inventory and the value of the ending WIP under both the FIFO method and the weighted average method. Deterra, Inc., uses three departments to produce a detergent. The Finishing Department is the third and last step before the product is transferred to storage. All materials needed to give the detergent its final composition are added at the beginning of the process in the Finishing Department. The company uses FIFO costing. The following data for the Finishing Department for October have been made available: Production data: In process, October 1 (labor and factory overhead, 75% complete) Transferred in from preceding department Finished and transferred to storage In process, October 31 (labor and factory overhead, 50% complete) 10,000 litres 40,000 litres 35,000 litres 15,000 litres Additional data: Work-in-process inventory, October 1: Cost from preceding department Cost from this department: $ 38,000 Materials Labor 21,500 39,000 42,000 $140,500 Factory overhead Transferred in during October $140,000 Cost added in this department: Materials $ 70,000 Labor 162,500 130,000 $362,500 Factory overhead Required: Calculate the cost of the units transferred out to finished goods inventory and the value of the ending WIP under both the FIFO method and the weighted average method.

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